He also alleged that Kejriwal had set up a "secret unit" like a "counter IB" for suspected spying.
Jung told India Today TV that the appointment of Nikunj Aggarwal, a relative of Kejriwal's wife, as OSD to Health Minister Satyendar Jain smacks of "nepotism and gross favouritism".
The AAP government had also appointed Jain's daughter Saumya Jain as an "advisor" to its mohalla clinics project.
"Jain made an incorrect statement that she (Saumya) was not paid. Fact is she was paid but it was returned. FIR has also been registered in the case of Waqf board," he said.
More From This Section
He also claimed that CBI has filed an FIR on the setting up of the "secret unit".
"No state government can set up a counter IB like this," he said.
When asked whether Kejriwal could face criminal charges, Jung said, "That is possible. There are cases that are being investigated and should the cases come to fruition and should the court find substance in the charge sheets then there is problem."
He said as LG he acted against Kejriwal's "tendencies" to play with the constitution and interpret it in a manner which Kejriwal thought was correct but he deemed as wrong.
However, he maintained that their personal relations were extremely cordial.
Jung said the Shunglu report deals with decisions taken by Kejriwal and the AAP Cabinet where it had no authority do so and without his concurrence.
"I have given post-facto approval to around 180 files with the remark that this is not how a democratic system works and declined about 80 and processed another 100 before demitting office.
"CBI is looking at seven to eight cases. Two or three more must be in the pipeline. (New LG) Anil Baijal would have a look at them. Another 10-12 is with the vigilance department. CBI has registered FIR in two to three cases and Preliminary Enquiry in another three or four," he said.